We have been talking for a while with Fairfax about the new fee changes. We are still waiting for clarification on a few points.
From an accountancy and management view, the biggest problem will be that these commissions (gross profit) were calculated as a percentage of sales. Soon you will need to determine the number of products sold and multiple it by the profit amount for that product. In the long term, I can see problems as this profit amount is adjusted over time. It will be a formula like before this date the RRP was this and the profit fee was this, then on this date the RRP became this and on this date the profit fee became this, etc etc.
The immediate problem is subagents. Now most people have set up their subagents commission to be a percentage of the recommended retail price which will not be true anymore.
Note: All these problems will be addressed but it means that we need to do changes in over a thousand systems. Hopefully, the required changes can be done automatically with no user input though our automatic update procedure. The automatic update procedure has turned out to being such a great time saver for everyone - Best thing since sliced bread.
